New Focus on Fashion Propels Adidas in China

3/8/2013 4:43AM

Adidas saw a 15% jump in its China sales in 2012. Shaun Rein of China Market Research tells the WSJ's Jake Lee how the German apparel maker has found success in the sportswear industry while other brands have failed.

This transcript has been automatically generated and may not be 100% accurate.

I ... the the ... DS ... China's ... market ... this is Asia's today mine GE and joined by Shel Rhind managing director at China Market Research ... show is to some recent things happening in this post well market the single will be writing about it the supply affording sales but have we seen by ... some new players are pushing in on a focus three was happening it's ... great to be here the last two years or so sports apparel sector is there really are by over inventory problems ECB game I think even I get ... to a lot of ... discounting in the last couple orders of us really hurt their brand image it's ... inside the CD is coming on stronger sales were both present you or two thousand and twelve ... and it's really because they're starting to sell all items above and beyond the sports apparel like the old line which is targeting teach consumers are starting to ... bring a lot of buzz and hype overall the Chinese market is moving away from sports apparel and moving more into aam Moore lifestyle type of an agent whether the teenagers are sports apparel like the North Face and checkbooks mines which were very bullish on ... say to me just say this post with actually getting free action will mount is really a very different markets at ... how we think about in the way Strine ... the sports apparel is fashionable and and and after two thousand Olympics ... the market was bombarded with sports apparel in and see that many Chinese working out like you in the United States ... so they're not buying a lot of the traditional sports apparel garments for working out or or fashion and that's why it ... is doing better right now because they're issuing more fashionable takes a close-up on the onthe standard sports apparel garments that are getting in the United States and in the sponsorship or other types of products like outdoor aware ... of the Northeast rather than from ninety ... two official evasive action deatails ... I believe we have even some high heeled ... shoes from some of these that supplies what's going on that ... one of the key things is Chinese consumer is the last six months to come along more individualistic ... on the gate before they always offer everybody else have we seen the slowing economy Chinese are starting to say in all I want to buy items that make me happy ... on so they're looking at high heeled shoes on you looking for a lifestyle experience it's is ... one of the reasons why Chinese are traveling across a lot ... of speeches by items but to experience something different that's being ... reflected in the closer to where they're looking for individual ISM rather than all for ... Tuesday aggressive store expansion to capture just all that trend he just hopes back ... is there any changes that this could be to fall Chief off a bit of a public hearing where stages of insatiable to mom for this ... there is ... insatiable demand on my thing as I mentioned because so many Chinese are worried about the economy are starting to cut back on their spending in Ireland but were especially well increasing spending on travel and food and beverage so far is that ... actually be very cautious about overexpansion and having too many outlets of muni bonds is a type of oversupply and prawns and beating after expanding just simply too fast now that being said the real growth is getting caught up in their work and that your cities where retail sales are going to grow around sixteen seventeen percent this year to make sure yet but the point of sale but I think that would be really cautious on overexpanding biscuits to Mr. changing their spending habits away from apparel and footwear orchids lifestyle experience ... you will see how did that that now ... think he symmetry joining that is shown trying ... managing director at China Market Research ... when Jamie this is Asia's today on the wall on the story and many more please conceived only SJ don't call ...